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TMI Blog1964 (4) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... gross sales and net sales made to ex-U.P. dealers as required by the C.S.T. Act, read with rule 5 of the Central Sales Tax (U.P) Rules but did not file the declaration in Form "C" along with the returns as required by rule 8(2) of the C.S.T. (U.P.) Rules. The reason given for the failure to attach Form "C" with the quarterly returns was that those forms had not been received from the ex-U.P. dealers by that time. 235 "C" Forms, however, were admittedly filed by the petitioner on 21st December, 1963, covering the inter-State ex-U.P. sales of Rs. 1,61,601-81 nP. The assessment was made on the 30th December, 1962. In regard to the remaining sales of Rs. 5,611-17 nP. no Form "C" was submitted as those sales were made to unregistered dealers. The Sales Tax Officer, however, by his assessment order dated 30th December, 1963, considered that as the "C" Forms were not filed within the time prescribed, which according to him meant the circular of the Commissioner whereby the time for acceptance of "C" Forms was extended up to the 31st March, 1963. As the "C" Forms were filed on the 21st December, 1963, which was after the date prescribed in the said circular the petitioner was denied the be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Campbell, C.J., in Acraman v. Herniman16 Q.B. 1003., where the words "In manner and form" were held to refer only to the mode in which the thing is to be done, and not to the thing which is to be done or the time for doing it. It was also pointed out in the Full Bench case that section 13(4)(g) of the C.S.T. Act indicated that the Legislature was conscious of the two different concepts as that of "the time within which" and "the manner in which", as both these expressions were used in sub-clause (g) to sub-section (4) of section 13 of the C.S.T. Act. The Full Bench further distinguished the Madras case where Acraman's case(1) was referred to by saying that the words "in the manner prescribed" was assumed as including the "time within which" the "C" Form was to be filed. The Full Bench, therefore, held that "in the manner prescribed" in section 8(4) of C.S.T. Act does not take in the time element and as such rule 6 of the C.S.T. (Kerala) Rules went beyond section 8(4) of the C.S.T. Act and as "C" Forms were filed before the assessment was completed they had to be accepted. The assessment, appellate and revisional orders which had deprived the assessee of the benefit of section 8(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the relevant provisions of the C.S.T. Act and the C.S.T. (U.P.) Rules: C.S.T. Act: "Section 8. (1) Every dealer, who in the course of inter-State trade or commerce- (a) sells to the Government any goods: or (b) sells to a registered dealer other than the Government goods of the description referred to in sub-section (3); shall be liable to pay tax under this Act, which shall be one per cent. of his turnover. (4) The provisions of sub-section (1) shall not apply to any sale in the course of inter-State trade or commerce unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner(a) a declaration duly filled and signed by the registered dealer to whom the goods are sold containing the prescribed particulars in a prescribed form obtained from the prescribed authority....." "Section 13. (3) The State Government may make rules, not inconsistent with the provisions of this Act and the rules made under sub-section (1), to carry out the purposes of this Act. (4) In particular and without prejudice to the powers conferred by sub-section (3), the State Government may make rules for all or any of the following purposes, namely..... (e) th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de in which the "C" Forms were required to be produced and not the time for filing such forms. I am inclined to agree, with respect, with the interpretation placed on these words by the Full Bench of the Kerala High Court, when it holds that the words "prescribed manner" do not give the State Government any authority to fix a time limit. It may be open to the State Government under section 13(5) to make rules for providing a penalty for breach of rules but it is not possible to deprive the holder of the benefit provided under section 8(1) of the C.S.T. Act by fixing a rigid rule of limitation within which the "C" Forms must be produced. Section 8(4) does not give the rule-making authority the necessary power to do so. The case relied upon by the learned Junior Standing Counsel is a decision under section 7-E of the U.P. Sales Tax Act and is distinguishable as the words used in sub-clause (1) of section 7-E clearly gave the power to impose conditions in respect of an application for composition. Section 13(3) of the C.S.T. Act, again, is of no avail to the department as the opening words made it abundantly clear that the State Government can only make such rules as are not inconsi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n those circumstances rule 17 of the Madras General Sales Tax Rules was held by the Supreme Court to be intra vires. This case therefore is of little or no avail to the department and the position is not any better in respect of the other two cases relied upon which, as already observed, were decisions on their own peculiar facts and special provisions of law. Apart from the vires of the impugned rule 8, it would also suffer from the vice of inconsistency with rule 5-A of the C.S.T. (U.P.) Rules. The laying down of a rigid time limit under rule 8(2), when a right is given to a dealer to file a revised return at any time before the assessment is completed would serve no useful purpose. If a revised return can be filed showing that there was some omission in the turnover it reasonably must follow that declaration in "C" Form can also be attached to the revised return. If that can be done there is no reason why a rigid time limit of 30 days from the end of every quarter should be fixed for filing of the "C" Forms. There are undoubtedly practical difficulties in the way of dealers in filing "C" Form as that is something which is to be obtained from the purchasers in respect of inter- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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